Bank of America Securities analyst Vivek Arya reiterated a Buy rating on Cadence Design yesterday and set a price target of $400.00.
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Vivek Arya has given his Buy rating due to a combination of factors including Cadence Design’s strong positioning to benefit from the proliferation of AI and advanced semiconductor technologies. The company is expected to see significant revenue growth, particularly with a notable increase projected for 2025, and it is well-positioned to gain market share in electronic design automation (EDA) and hardware, especially in underrepresented areas like Intel and Samsung.
Additionally, Cadence Design boasts a broadening intellectual property portfolio and maintains best-in-class profitability margins, which underscores the management’s commitment to sustainable growth. The cooling of trade tensions further mitigates risks, while the company’s strong bookings and backlog provide confidence in future performance. However, potential risks include its premium valuation and the unpredictable nature of its hardware sales.
Arya covers the Technology sector, focusing on stocks such as Advanced Micro Devices, Nvidia, and Analog Devices. According to TipRanks, Arya has an average return of 19.2% and a 63.71% success rate on recommended stocks.
In another report released today, J.P. Morgan also maintained a Buy rating on the stock with a $390.00 price target.